According to Ernst & Young (E&Y), like other industries, microfinance is faced with Financial, Operational, Compliance, and Strategic Risks. Some risks include the over-indebtedness (high Non Performing Loan = NPL). 

Stakeholders would like to feel confident that the Management understands the risks it faces and can manage and monitor them efficiently. They will want proof that risks are being mitigated and assurance that the internal control structure is sound. 

One necessary step that the Management of Sutra is doing to mitigate the risk throughout the company in the near future is to ensure that it prepares a risk management program which includes :

• Developing a risk management framework
• Establishing an Internal Audit Function
• Enhancing the company Internal Control environment

We're hoping that if executed correctly, a risk management program can be a driver of growth and business performance.